On July 1, 2020, the co-head of the logistics and planning department at Marico Ltd., based in India, was reviewing reports on various issues related to stock inventory and warehousing. After studying the reports, he found that both lost opportunity and warehousing costs for the company were high. Compounding the problem was the ongoing COVID-19 pandemic, which had added pressure to the company’s impending cost pressures. Initially, Marico Ltd. had thirty-three warehouses. However, after the Government of India introduced the Goods and Service Tax in 2017, various state taxes across the country were eliminated. The new law revolutionized the logistics industry and allowed Marico Ltd. to reduce the number of its warehouses to twenty-five. Could the company further reduce the number of warehouses without adversely impacting service levels?
On July 1, 2020, the co-head of the logistics and planning department at Marico Ltd., based in India, was reviewing reports on various issues related to stock inventory and warehousing. After studying the reports, he found that both lost opportunity and warehousing costs for the company were high. Compounding the problem was the ongoing COVID-19 pandemic, which had added pressure to the company's impending cost pressures. Initially, Marico Ltd. had thirty-three warehouses. However, after the Government of India introduced the Goods and Service Tax in 2017, various state taxes across the country were eliminated. The new law revolutionized the logistics industry and allowed Marico Ltd. to reduce the number of its warehouses to twenty-five. Could the company further reduce the number of warehouses without adversely impacting service levels?
In 2015, the assistant general manager at JSW Steel Ltd. (JSW), one of India’s largest steelmakers, faced a dilemma. Should JSW continue to transport the company’s end products to clients, or should JSW instead outsource the transportation to a third-party provider? Outsourcing would ensure timely delivery but would increase the cost. Another option was to pay an agency a premium for sharing information on the availability of Class I and Class II barge vendors. Class I barges were more reliable in terms of on-time and damage-free delivery, whereas Class II barges had a smaller capacity, were less reliable, and had a greater risk of goods being damaged, for which JSW could face both monetary and non-monetary losses. Although the Class I barges led to higher payoffs, the outsourcing option offered a fixed and relatively lower payoff. The assistant general manager’s objective was twofold: to meet the customer requirements in time and to benefit JSW financially. How should he decide which option to pursue?
Supplement to case W17363. In 2015, the assistant general manager at JSW Steel Ltd. (JSW), one of India's largest steelmakers, faced a dilemma. Should JSW continue to transport the company's end products to clients, or should JSW instead outsource the transportation to a third-party provider? Outsourcing would ensure timely delivery but would increase the cost. Another option was to pay an agency a premium for sharing information on the availability of Class I and Class II barge vendors. Class I barges were more reliable in terms of on-time and damage-free delivery, whereas Class II barges had a smaller capacity, were less reliable, and had a greater risk of goods being damaged, for which JSW could face both monetary and non-monetary losses. Although the Class I barges led to higher payoffs, the outsourcing option offered a fixed and relatively lower payoff. The assistant general manager's objective was twofold: to meet the customer requirements in time and to benefit JSW financially. How should he decide which option to pursue?
Kamaths Ourtimes Ice Creams Pvt. Ltd., a company located in Mumbai, India, manufactured and distributed ice cream under the brand Natural Ice Cream. The company specialized in using natural flavours in its products, a fact that helped it carve a niche for itself among health-conscious customers. In April 2017, after witnessing great demand for its ice cream across the country, the company's board of directors asked the director of operations to draft a plan to expand manufacturing capacity. As his first step towards this expansion, the director wanted to study the current operations and address any inefficiencies. One aspect that caught his attention was the recent delay in product delivery. Based on his experience, he did not see the company's capacity to fulfill current orders as the reason for delays. Therefore, he decided that the problem was related to the process flow. He would have to find ways to streamline the process to reduce or eliminate all delays in delivery.
Kamaths Ourtimes Ice Creams Pvt. Ltd., a company located in Mumbai, India, manufactured and distributed ice cream under the brand Natural Ice Cream. The company specialized in using natural flavours in its products, a fact that helped it carve a niche for itself among health-conscious customers. In April 2017, after witnessing great demand for its ice cream across the country, the company’s board of directors asked the director of operations to draft a plan to expand manufacturing capacity. As his first step towards this expansion, the director wanted to study the current operations and address any inefficiencies. One aspect that caught his attention was the recent delay in product delivery. Based on his experience, he did not see the company’s capacity to fulfill current orders as the reason for delays. Therefore, he decided that the problem was related to the process flow. He would have to find ways to streamline the process to reduce or eliminate all delays in delivery.
On June 25, 2014, the director of marketing and development at Allied Founders Pvt. Ltd., a company that operated out of Belgaum in India, was analyzing various problems associated with his company’s management approach. The director was considering a change from the company’s system of breakdown maintenance to a new information system of preventive maintenance. While executing its first international export order, the company faced several challenges related to production delays, mainly due to poor equipment maintenance. To plan for his company’s future in the international market, the director proposed adopting preventive maintenance as a solution, but he was unsure whether to use traditional means (i.e., manual record keeping) or implement a new information system. He was concerned about the issues that could arise from the change, including resistance from employees worried about job loss, providing the necessary training, and exposing the company to other risks.
On June 25, 2014, the director of marketing and development at Allied Founders Pvt. Ltd., a company that operated out of Belgaum in India, was analyzing various problems associated with his company's management approach. The director was considering a change from the company's system of breakdown maintenance to a new information system of preventive maintenance. While executing its first international export order, the company faced several challenges related to production delays, mainly due to poor equipment maintenance. To plan for his company's future in the international market, the director proposed adopting preventive maintenance as a solution, but he was unsure whether to use traditional means (i.e., manual record keeping) or implement a new information system. He was concerned about the issues that could arise from the change, including resistance from employees worried about job loss, providing the necessary training, and exposing the company to other risks.
In April 2016, the owner of Apoorva Mess (Apoorva) in Manipal, India, wwanted to open a full-service economical restaurant to reach out to customers, beat the competition, improve his sales, and fulfill his dream of serving quality food at affordable rates to the lower middle class. He was facing a dilemma over selecting the best location for establishing his new restaurant, knowing that the wrong choice would spell disaster for his business in the long run. A number of conflicting constraints were making it difficult for him to come to a decision. He wanted to follow a systematic approach to pinpoint the final location.
In April 2016, the owner of Apoorva Mess (Apoorva) in Manipal, India, wanted to open a full-service economical restaurant to reach out to customers, beat the competition, improve his sales, and fulfil his dream of serving quality food at affordable rates to the lower middle class. He was facing a dilemma over selecting the best location for establishing his new restaurant, knowing that the wrong choice would spell disaster for his business in the long run. A number of conflicting constraints were making it difficult for him to come to a decision. He wanted to follow a systematic approach to pinpoint the final location.
The customer relationship manager at JSW Steel Ltd., a large steel manufacturer in India, needed to analyze his available transportation and logistics options to meet an urgent order for a long-time and valued client. The manager needed to decide whether to send the shipment through the customary rail route or, instead, to use the new sea route that his company had recently developed. His dual objective was to meet the customer's requirements in time, while also delivering some financial benefit to boost his company’s quarterly results.
The customer relationship manager at JSW Steel Ltd., a large steel manufacturer in India, needed to analyze his available transportation and logistics options to meet an urgent order for a long-time and valued client. The manager needed to decide whether to send the shipment through the customary rail route or, instead, to use the new sea route that his company had recently developed. His dual objective was to meet the customer's requirements in time, while also delivering some financial benefit to boost his company's quarterly results.